Amid Cryptocurrency Market Turbulence, Tom Lee Predicts Bitcoin at $100,000, Signaling Risk Asset Rally

The price of Bitcoin (BTC) has fallen below $100,000, continuing a downward trend across the cryptocurrency market.

According to the cryptocurrency news outlet Daily Hodl on the 9th (local time), Bitcoin has dropped to $97,470, with most altcoins also experiencing a correction. According to the cryptocurrency data aggregation site CoinGlass, approximately $567.39 million in liquidations occurred over the past 24 hours, mostly from leveraged long positions on Bitcoin.

Cryptocurrency analyst Rekt Capital reported that the altcoin market is testing a major resistance line on the OTHERS Chart (the market size of digital assets excluding the top 10). He emphasized that the OTHERS Chart surpassed the $425 billion level (black line) for the first time since 2021, but this level has always acted as a "danger zone."

Rekt Capital analyzed that "this correction is likely to lead to a much shallower retrace due to weaker rebounds than before."

As an additional negative signal for the altcoin market, Bitcoin Dominance (BTC.D) has entered an oversold state based on the Relative Strength Index (RSI) on the daily chart. Rekt Capital reported that the RSI of BTC.D has fallen to about 22, the lowest since August 2023, indicating the possibility of a rebound in Bitcoin Dominance.

He warned that "whenever the BTC.D RSI has fallen to this level in the past few years, Bitcoin Dominance has turned upward," suggesting that there may be additional downward pressure on the altcoin market.

Meanwhile, according to Daily Hodl, Fundstrat's Chief Investment Officer (CIO) Tom Lee analyzed that Bitcoin's recent strength signals an increase in other asset classes.

In an interview with CNBC, Tom Lee stated that Bitcoin's quarterly strength shows investors' preference for high-risk assets, suggesting an additional rally in indices like the S&P 500.

He explained, "The rise of Bitcoin indicates that investors are ready to take on higher risks. This is a signal of breaking away from the pattern where capital was staying put while waiting for the economy to recover. The rise of Bitcoin seems to be a precursor to what the S&P 500 might do for the rest of the year."

Tom Lee predicted that the limited circulating supply of BTC will be strongly felt in the market after breaking through the psychological price level of $100,000.

He emphasized that "breaking through $100,000 means that the available supply of Bitcoin for sale in the market is gradually decreasing, which will promote further price increases in the future."

CIO Lee mentioned that regarding the Federal Reserve's interest rate cut policy, contrary to general predictions, fewer rate cuts next year could be positive for risk assets.

He added, "Earlier this year, it was thought that five rate cuts would be good for the stock market in 2025, but if the number of rate cuts decreases next year, it might actually extend the dovish cycle. The market will have to adapt to this new concept over time."